Opening Remarks Dr. Simon Leung NetDragon Websoft Holdings Limited Stock Code: 777 HK 2025 Annual Earnings Presentation March 27, 2026 Disclaimer This presentation is prepared by NetDragon Websoft Holdings Limited (the "Company", together with its subsidiaries referred to as the "Group" in this presentation) solely for information purposes and is not to be construed as a solicitation of an offer to buy or sell any securities of the Company in any jurisdiction. Information is given in summary form and does n ...

Market Overview - Hong Kong stocks opened lower on March 26, following two days of gains, with major internet stocks experiencing a pause in their upward momentum. Alibaba-W fell over 3%, Meituan-W dropped more than 2%, Tencent Holdings slightly decreased by 0.89%, while Xiaomi Group-W rose against the trend. The Hong Kong Internet ETF Huabao (513770) saw a decline of 1.14% in its market price [1][7]. Regulatory Impact - A significant turning point occurred in the food delivery market as the National Market Regulation Administration circulated a commentary titled "The Food Delivery War Should End," interpreted as a clear signal from regulators to halt "involutionary" price wars. Following this, Meituan-W and Alibaba-W surged, with southbound funds recording a net purchase exceeding 20 billion yuan throughout the day. This series of anti-involution policies is expected to cool down price wars among major platforms, leading to performance recovery expectations [3][9]. Industry Outlook - The fund manager of the Hong Kong Internet ETF Huabao, Feng Chen, noted that recent price increases from major model manufacturers and cloud service providers indicate significant upward elasticity in the pricing of internet leaders' computing power and cloud services amid changing demand. Coupled with the diminishing competition from involution, multiple positive factors are expected to resonate, leading to a gradual improvement in the fundamentals of Hong Kong internet stocks starting from the second quarter. Valuation and positioning are seen as safeguards for future elasticity [3][9]. Investment Tools - For investors looking to reduce volatility while remaining optimistic about Hong Kong technology stocks, the Hong Kong Large Cap 30 ETF (520560) is highlighted as the first in the market to adopt a "technology + dividend" strategy. This ETF includes high-elasticity tech stocks like Alibaba, as well as stable high-dividend stocks from banks and insurance companies, making it an ideal long-term investment tool for the Hong Kong market [4][10]. ETF Details - The Hong Kong Internet ETF Huabao (513770) and its linked funds (Class A 017125; Class C 017126) passively track the CSI Hong Kong Internet Index, with the top ten weighted stocks comprising major tech giants like Alibaba-W and Tencent Holdings, as well as various AI application companies. The ETF offers T+0 trading and good liquidity [3][9].

Core Viewpoint - The Hong Kong stock market opened lower on March 20, with technology stocks struggling due to disappointing third-quarter earnings from Alibaba, which saw a significant drop in both revenue and profit [1][8]. Group 1: Company Performance - Alibaba's third-quarter revenue for the fiscal year 2026 reached 284.84 billion yuan, a year-on-year increase of 2%, while adjusted net profit fell by 67% to 16.71 billion yuan [10]. - Adjusted EBITA for Alibaba was 23.397 billion yuan, reflecting a 57% year-on-year decline [10]. - Despite overall profit pressure from strategic investments, AI and cloud computing emerged as key growth areas, with the cloud intelligence group revenue increasing by 36% year-on-year [10]. Group 2: Market Trends - The AI-related product revenue for Alibaba has achieved triple-digit growth for ten consecutive quarters, indicating that AI is becoming a core growth engine for the company [10]. - Recent price increases announced by Tencent Cloud and Alibaba Cloud, along with a surge in token usage, are expected to drive up cloud product prices, enhancing the commercial viability of leading internet companies during the AI cycle [10]. - As of March 18, the price-to-earnings ratio (TTM) for the Hong Kong Internet Index was 22.03, significantly lower than that of the NASDAQ 100 and A-share technology sectors, suggesting a favorable margin of safety for investors [10]. Group 3: Investment Opportunities - The Hong Kong Internet ETF (513770) tracks the CSI Hong Kong Internet Index and includes major tech companies like Alibaba, Tencent, and Xiaomi, providing significant liquidity and T+0 trading [11]. - For investors looking to reduce volatility while still gaining exposure to technology, the Hong Kong Large Cap 30 ETF (520560) offers a balanced strategy by including both high-growth tech stocks and stable dividend-paying companies [13][14].

Core Viewpoint - The Hong Kong stock market experienced a significant surge, with the Hang Seng Index rising by 1.45% and the Hang Seng Tech Index increasing by 2.69%, driven by positive sentiment from Wall Street and returning Middle Eastern funds [22][23][31]. Group 1: Market Performance - The Hong Kong stock market saw a notable rally, with the Hang Seng Index closing up 1.45% and the Hang Seng Tech Index up 2.69% [22][23]. - The semiconductor sector is expected to experience a new wave of price increases, with chip stocks showing strong performance [23][27]. - Major internet companies such as Xiaomi and Tencent saw significant gains, contributing to the overall market rally [23][30]. Group 2: Sector Highlights - The pharmaceutical sector led the charge, with the Hong Kong Stock Connect Innovation Drug ETF (520880) and the Hong Kong Medical ETF (159137) both rising over 2%, ending a three-day decline [23][30]. - The Hong Kong Information Technology ETF (159131) surged by 3.13%, marking a strong performance in the semiconductor and hard technology sectors [27][30]. - The medical sector is gaining traction, with key players like Kangfang Biopharmaceutical and CSPC Pharmaceutical rising over 5% [30][33]. Group 3: Investment Insights - Analysts suggest maintaining a "barbell strategy" in the Hong Kong market, focusing on high-dividend stocks and energy operators for defensive positions, while targeting semiconductor equipment for growth [24][31]. - The valuation of Hong Kong chip stocks is considered attractive, with the latest P/E ratio for the Hong Kong Information Technology ETF at 32.88, indicating significant upside potential [28][30]. - The Hong Kong Medical ETF is positioned to benefit from the government's emphasis on the biopharmaceutical industry, which is now regarded as a pillar alongside other key sectors [34][35].

Core Viewpoint - The Hong Kong internet sector has seen significant gains, with major companies like Xiaomi, Meituan, Tencent, and Alibaba experiencing notable stock price increases, indicating a positive market sentiment towards technology stocks in the region [1][8]. Group 1: Market Performance - The Hong Kong internet sector ETF (513770) rose over 2% with a trading volume exceeding 400 million yuan [1][8]. - Xiaomi Group-W increased nearly 5%, while Meituan-W and Tencent Holdings both rose over 3%, and Alibaba-W saw an increase of over 1% [1][8]. Group 2: Investment Opportunities - Michael Burry, a prominent investor, expressed optimism about the Hang Seng Technology Index, highlighting a significant divergence between stock prices and the steady growth of revenues and profits in related companies, presenting a historical investment opportunity [2][8]. - There are rumors that Middle Eastern investors, previously relocated to Singapore or Dubai, are considering reallocating some of their assets back to Hong Kong [2][8]. Group 3: AI Developments - Alibaba is set to launch a flagship AI application aimed at the AI Agent market, integrating various B2B services such as Taobao, Alipay, and Alibaba Cloud into this product [3][9]. - The Hong Kong internet ETF (513770) and its linked funds are designed to track the CSI Hong Kong Internet Index, which includes major tech companies and AI application firms, indicating strong leadership and liquidity in the sector [3][9]. Group 4: ETF Composition - The top ten holdings of the Hong Kong internet ETF include Alibaba-W (16.05%), Tencent Holdings (13.97%), and Xiaomi Group-W (12.51%), showcasing a concentration of leading tech firms [4][10]. - The ETF is structured to provide a balanced exposure to both high-growth tech stocks and stable dividend-paying companies, making it an attractive long-term investment option [4][10].

Group 1 - The company NetDragon (00777.HK) announced a meeting scheduled for March 26, 2026, to discuss various matters [1] - The agenda includes reviewing and approving the audited consolidated final results for the year ending December 31, 2025, and publishing these results on the Hong Kong Stock Exchange and the company's website [1] - The company will consider the proposal for the payment of a final dividend, if any, and may discuss the suspension of share transfer registration if necessary [1] - Additional matters will also be addressed during the meeting [1]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈的內容概不負責，對其準確性或完整性 亦不發表任何聲明，並明確表示概不就因本公佈全部或任何部份內容而產生或因倚賴該等內容而引致的 任何損失承擔任何責任。 謹此通告網龍網絡控股有限公司（「本公司」）之董事（「董事」）會（「董事會」） 將於二零二六年三月二十六日（星期四）舉行會議，商討下列事項： 承董事會命 網龍網絡控股有限公司 主席 劉德建 香港，二零二六年三月十二日 於本公佈日期，董事會包括五名執行董事，為劉德建博士、梁念堅博士、劉路遠先生、陳宏展 先生及林云女士；一名非執行董事為林棟樑先生；及三名獨立非執行董事，為李繩宗先生、 廖世強先生及盧永仁博士。 1. 省覽及酌情通過本公司及其附屬公司截至二零二五年十二月三十一日止年度之經 審核綜合末期業績（「末期業績」），並通過將於香港聯合交易所有限公司網站 及本公司網站刊登之末期業績公佈； 2. 考慮建議派付末期股息（如有）； 3. 考慮暫停辦理本公司股份過戶登記（如有需要）；及 4. 處理任何其他事項。 NetDragon Websoft Holdings Limited 網龍網絡控股有限公司 （於開曼群島註 ...

Group 1 - The core viewpoint of the article highlights the rebound of Hong Kong technology stocks, with the Hong Kong Technology ETF (513020) rising over 1% [1] - Since October 2025, the Hong Kong stock market has been in a continuous adjustment phase, with smart money buying on dips [1] - On March 9, the Hong Kong market experienced a historic moment with a net inflow of southbound funds reaching 36 billion HKD, breaking the previous record of 35.876 billion HKD set on August 15, 2025 [1] Group 2 - According to China International Capital Corporation (CICC), the price-to-earnings ratio of Hong Kong technology stocks is currently below the mean by one standard deviation, and the RSI indicator suggests it may be in an oversold position, making it attractive [1] - For some investors, the current valuation and market sentiment of Hong Kong technology stocks provide an opportunity for gradual accumulation [1] - Looking ahead, the potential for Hong Kong stocks to outperform other markets depends on three conditions: an increase in expectations for Federal Reserve easing, a return of unique structural characteristics of Hong Kong stocks to market focus, and an influx of southbound funds [1] Group 3 - The Hong Kong Technology ETF (513020) tracks the CSI Hong Kong Stock Connect Technology Index, which includes leading technology stocks in sectors such as the internet, chips, new energy, and innovative pharmaceuticals [1] - The ETF comprises popular stocks like Alibaba, Xiaomi, Tencent, Meituan, Lenovo, BYD, and SMIC, making it a quality target for positioning in the rebound of Hong Kong stocks [1]

Market Performance - The Hong Kong stock market experienced a significant increase, with the Hang Seng Index rising by 1.72% and the Hang Seng Tech Index increasing by 3.15% [1] - Major internet companies saw substantial gains, including JD.com up by 10%, Trip.com up by 7%, and NetEase up by 5% [1] Individual Stock Movements - JD Logistics surged by 23%, indicating strong market interest [3] - Other notable performers included Tencent Holdings and Alibaba, both rising over 3% [1][2] Sector Performance - The healthcare, software, and food and beverage sectors experienced notable increases, while the metals and steel sectors saw declines [5][6] - Specific sector indices showed significant growth, with the Hong Kong healthcare index up by 3.34% and the software services index up by 2.85% [6]

Market Performance - The Hong Kong stock market experienced a significant rise, with the Hang Seng Index increasing by 1.72% and the Hang Seng Tech Index rising by 3.15% [1] - Major internet companies saw substantial gains, including JD.com up by 10%, Trip.com up by 7%, and NetEase up by 5% [1] Individual Stock Movements - JD Logistics surged by 23%, indicating strong market interest [2] - Other notable performers included Tencent Holdings and Alibaba, both rising over 3% [1][2] Sector Performance - The healthcare, software, and food and beverage sectors showed strong performance, while the metals and steel sectors experienced declines [3][5] - Specific sector indices included the Hong Kong healthcare index up by 3.34% and the software services index up by 2.85% [4]